News & market updates

Sri Lanka will allow direct receipt of funds through PayPal into local bank accounts from May 15. The Central Bank and private banks finalized arrangements to remove legal and technical barriers, aiming to boost official foreign exchange inflows and enable regulated tax reporting.

Sri Lanka's rupee closed weaker at 321.70/85 per USD on Thursday, while government bond yields fell across maturities (e.g. 01.07.2028 at 9.65/70%, 15.10.2029 at 9.90/10.00%).

US dollar rose above Rs.320 today, mid-rate at Rs.320.45 (buy Rs.317.26, sell Rs.324.87); CBSL reports the rupee has depreciated about 2.9% against the USD as of April 30, 2026.

The weekly Treasury Bill auction was fully subscribed, raising Rs.100 billion in Phase I with the 91-day WAYR at 8.20% and the 364-day at 8.52% (182-day 8.24%). Market liquidity rose to Rs.254.52bn and USD/LKR closed around 320.20/321.00.

The Sri Lankan rupee weakened to about 321.00/30 per USD (one-week forward 321.60/90) while government bond yields fell (e.g. 01.07.2028 quoted 9.65/70%). The ASPI rose 0.75% to 22,909 and TT rates showed USD at 317.50/324.50.

LAUGFS Gas revised domestic refill prices to Rs. 6,245 (12.5kg) and Rs. 2,500 (5kg). Litro Gas held retail LP gas prices for May unchanged at Rs. 4,765 (12.5kg), Rs. 1,910 (5kg) and Rs. 890 (2.3kg).

Sri Lanka's rupee closed weaker at 321.00/30 to the US dollar on Wednesday (from 319.90/320.40), while government bond yields were broadly steady — e.g., the 01.07.2028 bond at 9.70/75% and the 15.10.2029 bond at 10.05/15%.

The US dollar selling rate in Sri Lanka climbed above Rs.324 to Rs.324.03 (buying Rs.316.40, spot Rs.319.78), and the rupee has depreciated 2.9% against the dollar year-to-date to April 30, 2026.

Sri Lanka's rupee weakened to 320.10/60 to the US dollar from 319.90/320.40 the previous day, while bond yields were mostly steady as a 100,000 million rupee Treasury bill auction was underway. The ASPI rose 0.65% to 22,731.

Secondary government bond yields rose for a second consecutive session, with maturities trading from 8.32% (01.08.26) up to about 11.29% (15.09.34). A Rs.100bn T‑bill auction is scheduled, net liquidity surplus was Rs.246.30bn and USD/LKR closed near 319.90/320.40.

ACAP Stock Brokers has restructured under new owner Stallion Consultancy into a boutique, research-driven adviser targeting foreign investors (Japan, Australia, Switzerland, Austria) to channel FDI into the Colombo Stock Exchange. It is seeking regulatory approval for a Swiss board member and aims to streamline Special Investor Foreign Currency Account processes facing foreigners.

Sri Lanka may face medicine shortages as industry bodies warn NMRA has not allowed upward price revisions despite a 5.6% rupee depreciation over six months. The country imports about US$667m of drugs (≈85% of the market) and costs have risen up to 25% per stakeholders.

Sri Lanka's rupee closed at 319.90/320.40 to the US dollar, slightly weaker than the prior 319.60/320.00, while government bond yields edged up on several maturities; 100,000 million rupees of Treasury bills are to be auctioned Wednesday.

Sri Lanka Customs collected 236.5 billion rupees in April, 30.5% above its April target, and 919.3 billion rupees in the first four months, 33.7% above the cumulative target; first-four-month revenue jumped about 50% year-on-year.

Sri Lanka's rupee was quoted at 319.50/320.20 to the US dollar and bond yields were broadly steady. Inflation reached the central bank's 5% target midpoint, the central bank began repo operations while leaving high excess liquidity, and a 100,000 million rupee T-bill auction is scheduled.

The Iran war-driven energy crisis led the Asian Development Bank to cut growth for developing Asia to 4.7% this year and 4.8% in 2027 and raise its inflation forecast to 5.2% for this year. Governments are using subsidies, duty cuts, reserves and export curbs to shield consumers while several regional currencies have weakened.

Secondary bond yields rose marginally amid Middle East tensions and higher oil prices, with the 15.12.26 at 8.55%-8.65% and longer maturities trading around 10.05%-11.26%. Net money-market liquidity surplus was Rs.226.55bn (Rs.176.10bn at SDFR 7.25%), and USD/LKR closed at Rs.319.60/320.

Sri Lanka's rupee closed at 319.60/320.00 to the US dollar and longer-dated government bond yields edged up (e.g. 01.07.2030 at 10.20–10.25%); inflation reached the central bank's 5% midpoint on April 30.

First Capital says listed plantation firms AGAL, KGAL, KOTA and HOPL are well positioned to benefit from rising rubber prices as rubber makes up about 15%+ of their revenue. Dipped Products and exporters may also gain from higher rubber prices and rupee depreciation, while Kelani Tyres could face margin pressure.

Secondary bond market ended the week steady with yields broadly unchanged; the 91-day T-Bill yield fell to 8.20%, money-market liquidity rose to Rs.218.70bn, foreign holdings of rupee bonds held at Rs.144.20bn, and USD/LKR closed around 319.75/320.00.

Sri Lanka has seen four fuel price hikes in five weeks, the latest effective May 3 under a cost-reflective formula tied to higher global crude, driving a sharp rise in inflation and living costs. The CPI jump leaves the Central Bank weighing rate hikes against rupee depreciation risks.

Sri Lanka's current account surplus fell 43.9% YoY to $531.5m in 1Q2026. The decline was driven by a sharply wider trade deficit (up 122% YoY), weaker services/tourism inflows with March surplus collapsing 90.7% YoY to $44.6m, and a 74.7% surge in fuel import costs.

Sri Lanka's rupee was quoted at 319.20/320.00 to the US dollar and government bond yields were broadly steady across the curve, with quoted yields around 9.75–11.05%. The ASPI was up 0.41% at 22,641.59 and telegraphic transfer USD rates were 316.30/323.30.

Overseas Realty (OSEA.N0000) reported group revenue of Rs. 3,292 million and group PBT of Rs. 1,926 million for the quarter ended 31 March 2026. Higher rental rates and occupancy lifted WTC, Mireka Tower and Havelock City Mall revenues; NAV/share was Rs. 54.43 and EPS Rs. 1.47.

Sri Lanka's current account posted a Q1 cumulative surplus of USD 531m, even as the merchandise trade deficit widened to USD 2.3bn driven by a 74.7% jump in fuel import spending. Tourist arrivals fell 19.8% and services surplus dropped 42.4% while remittances rose 26.5% to about USD 2.3bn; gross official reserves were USD 7.0bn and the rupee was down 2.9% YTD by end-April.

Sri Lanka's rupee closed at 319.75/320.00 to the US dollar, slipping below 320 as inflation reached the central bank's 5% target; the central bank intervened around 319.50 and conducted repo operations while bond yields remained broadly steady.

Sri Lanka's rupee was quoted at 319.50/320.50 to the US dollar in the spot market and bond yields were broadly steady, with 15.09.2029 and 15.10.2029 bonds quoted around 9.90–10.00%. Telegraphic transfer rates and CSE indices were little changed (ASPI up 0.08% at 22,617).

The weekly T‑bill auction saw strong demand for the 91-day bill issued at a weighted average yield of 8.20% (‑7bp) and the auction raised Rs.126.90bn (90.64% subscribed). Secondary bond yields were broadly steady, market liquidity neared Rs.248.48bn and the rupee closed at Rs.319.75/320.50.

Sri Lanka Customs exceeded its April revenue target, collecting 186.5 billion rupees by April 27 against a 181.3 billion target, marking the fourth consecutive monthly outperformance. Officials attribute the surge to stronger enforcement, improved valuation and a rebound in import volumes, and customs has reached 39.4% of its 2,207 billion annual target in the first 117 days.

Sri Lanka's rupee closed weaker at 319.75/320.60 to the US dollar in the spot next market (from 319.00/320.00), while government bond yields were broadly steady — e.g. 15.09.2029 at 9.95/10.00% and 01.07.2030 around 10.15/20%.